Today, family dynamics are shifting. More and more women are becoming the primary breadwinners and dads are taking on the role of primary caregiver. Since 1989, the number of men who do not work outside the home has nearly doubled to 2 million, according to the U.S. Census Survey. This Sunday we celebrate Father’s Day. As we reflect on what our dads mean to us, it’s important to consider their financial value as stay-at-home parents.
Too many families don’t purchase life insurance for stay-at-home fathers, but if tragedy strikes it can have a dramatic impact on a family’s finances and their way of life. To make sure your family is taken care of, here are several steps to take when considering life insurance.
Shop for a Life Insurance Policy
Purchasing life insurance can be very expensive, so it’s important that you research policies that offer the best options for you and your family. For most people, term life insurance is the most affordable option. It pays out a death benefit to your beneficiaries if you die within the term of your policy agreement. These policies are typically easier to get approved than whole life or permanent life insurance policies, which build value over time.
How Much Life Insurance is Needed?
The general rule for life insurance is to have 10 times the income your family would need if you pass away. When estimating, consider how much it would cost for your family members to take care of all the things you do if you aren’t around. Salary.com, in its 16th Annual Salary Survey, attempted to calculate the salary of a stay-at-home parent. On average, they found that a stay-at-home parent spends 92 hours of work each week and would make an annual salary of $143,102 if employed.
You can start by comparing term life insurance quotes online. Get quotes from several life insurance companies, without offering any sensitive information, such as your Social Security number. Quality companies should only require anonymous information to provide a quote. Before you decide which company you’d like to purchase life insurance from, spend time researching them to make sure they are financially strong.
It’s always a good idea to talk to a financial professional about life insurance to make sure the term life insurance policy will fit your needs and you will be able to afford the premiums.